According to the SovEcon analytical centre, prices for sunflower oil on the Russian domestic market continue to rise for the second week. In contrast, there is a slight decrease in the export market after the increase a week earlier.
Thus, according to the results of the reporting period, prices for sunflower in Russia increased by EUR 6.69 to EUR 436.62 per ton (average price for the European part of Russia without VAT), and for sunflower oil by EUR 4.60 upward to EUR 1.237 per ton (without VAT).
“The price increase is likely due to an increase in purchases by processing companies, possibly related to the expected increase in oil exports in September when quotas will be lifted”, analysts say.
SovEcon also stresses that farmers are concerned about hot and dry weather, threatening potential sunflower yields in the 2022/23 season.
According to the centre’s specialists, the sunflower oil price on FOB terms fell by USD 10 to USD 1,420 per ton last week, following a drop in soybean and palm oil prices.
“Due to the high expected oilseed harvest in the world and Russia, as well as a decline in purchases of vegetable oils by China, it is difficult to expect a long-term price increase in foreign markets,” experts said.
SovEcon predicted that the export tariff for sunflower oil might fall in September.